On Tuesday, April 12th, 2016, the Bond Bank will offer, through a competitive bidding system, approximately $63.3 million of par in general obligation and refunding bonds, the 2016 Series Two. The proceeds are being used to make two loans to Governmental Units for new money purposes, as well as refund bonds previously issued by the Bond Bank (refundings dependent on market conditions at time of sale). Proceeds used for new money purposes include loans to the Fairbanks North Star Borough to make school capital improvements authorized by Borough voters in 2011 and 2013, and to the City of Ketchikan for harbor improvements.
In February 2016, the Bond Bank closed on the 2016 Series One general obligation and refunding bonds in the approximate amount of $33 million. The 2016 Series One bond proceeds were used for the following purposes: (i) to make a loan to the City of Klawock to repay a prior loan and to make improvements to the City's public safety building; (ii) a loan to the Kodiak Island Borough for school improvements; (iii) a loan to the Kenai Peninsula Borough for the purchase of emergency response vehicles, (iv) to refund bonds previously issued by the Bond Bank; and (v) to purchase a surety policy for deposit to the Reserve Fund and to pay a portion of the costs of issuance of the 2016 Series One Bonds. The bonds were sold by competitive sale on January 20, 2016, achieving a true interest cost of 2.5574%. The bond sale saved borrowers over $4.38 million in present value savings including the refinancings related to the City of Seward's 2008 Series One and 2008 Series Two.
In September 2015, the Bond Bank closed on the 2015 Series Three general obligation and refunding bonds in the approximate amount of $96.2 million. The 2015 Series Three bond proceeds were used for the following purposes: (i) to make five loans to Governmental Units for new money purposes; (ii) a loan to the University of Alaska to pay a portion of the costs of constructing a new Combined Heat and Power Plant at the University's Fairbanks campus; (iii) a loan to Haines Borough for mechanical system upgrades and replacement of an air handling unit at Haines High School; (iv) two loans to the Kodiak Island Borough for expansion of Kodiak High School and for various renewal and replacement projects in Borough schools; and (v) a loan to the City of King Cove to pay a portion of the costs to construct a run-of-the-river hydroelectric facility.